SEC v. Schering Plough Corp. (D.D.C. 2004)

• Case Name
• SEC v. Schering Plough Corp. (D.D.C. 2004)

• Date Filed
• 06/09/2004

• Enforcement Agency
• SEC

• Countries
• Poland

• Foreign Official
• Polish government official, who was also the president of the Chudow Castle Foundation.

• Date of Conduct
• 1999 to 2002

• Nature of Business
• Sale of pharmaceutical products by Schering-Plough Corp., a U.S.-based global health care company.

• Influence to be Obtained
• According to the complaint filed by the SEC on June 8, 2004, between February 1999 and March 2002, Schering‑Plough’s Polish subsidiary paid approximately $76,000 to a charitable foundation to induce the foundation’s president, who was also a Polish government official, to influence the purchase of Schering‑Plough’s pharmaceutical products.  None of the payments to the charity were accurately reflected in Schering‑Plough’s books and records.  In addition, according to the complaint, Schering‑Plough’s system of internal accounting controls failed to prevent or detect the improper payments.

• Enforcement
• Without admitting or denying the allegations in the complaint, on June 16, 2004, Schering‑Plough consented to pay $500,000 civil penalty to settle the matter.

• Amount of the Value
• Approximately $76,000.

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• None

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 500,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 500,000

Schering Plough Corp. 

• Citation
• SEC v. Schering-Plough Corp., No. 1:04-cv-00945 (D.D.C. 2004).

• Date Filed
• 06/09/2004

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order, Complaint and Consent Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States